![]() ![]() ** USD/INR forward premium as of March 21 for end current month is 2.25 paisa ** USD/INR NSE March futures settled on Tuesday at 82.6750 ![]() ** One-month non-deliverable rupee forward at 82.62 onshore one-month forward premium at 19.50 paisa right when Jerome Powell was insisting that the banking sector was sound," ING analysts said in a note. ![]() "Much of the damage seems to have come from Treasury Secretary Yellen's parallel remarks. stocks had risen sharply after the decision, but reversed direction when Treasury Secretary Janet Yellen set off jitters over stability by telling Congress she hasn't considered blanket insurance for deposits as a way to stem turmoil caused by two major bank failures this month. However, gains in risk assets were capped by Fed Chair Jerome Powell reiterating the need to fight inflation and that the banking industry stress could trigger a credit crunch with "significant" implications for the U.S. Traders may be anticipating a dollar liquidity crunch in the domestic markets, and hence the rupee is expected to fall towards 82.65-levels, he added.Īsian currencies broadly gained against a softer dollar index, that fell after the Fed's rate hike that was accompanied by a change in language to "some additional" increases may be needed rather than "ongoing increases".įed funds futures traders imply a nearly even chance of just one more 25 bps rate hike at the May meeting. The non-deliverable forwards indicate the rupee will open at around 82.45-82.50 to the dollar compared to 82.6550 on Tuesday.Įven though the Fed statement was perceived as slightly dovish compared to its stance earlier this month, it's unlikely the rupee will sustain its gains as we're expecting large dollar bids, said a state-run bank trader. Federal Reserve hiked rates by 25 basis points and signalled it was closer to the end of its tightening cycle amid turmoil in the financial markets. MUMBAI, March 23 (Reuters) - The Indian rupee was expected to rise against the U.S.
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